Businesses spending money on property structures can obtain tax relief
A very common query that the ACCA Technical Advisory team answers relates to the availability or non-availability of capital allowances where a business spends money on the structure of a property. While the changes will mean the non-availability almost disappears there will still be the difference in tax treatment for integral features to property and the actual structural asset.
What is changing?
The Chancellor announced on 29 October 2018 the introduction of a new capital allowance for new non-residential structures and buildings (SBA). This was designed to address the tax gap and will be good news for businesses. A summary of the core tax relief and timing is:
Progress of the legislation
On 29 October 2018 a technical note was issued outlining the effects of the proposed legislation. Note that the above summary remains the same as per the original technical note.
A number of meetings with interested groups were held which resulted in certain changes to the draft legislation and an introductory note to draft secondary legislation was issued on 13 March 2019.
The government invited comment by 24 April 2019 on the detailed draft secondary legislation. An overall response to consultation responses will be published in May 2019.
The final, published version of this legislation will be in the format of a Statutory Instrument. Once in force, the legislation will apply to eligible costs incurred on or after 29 October 2018 in line with the commencement provisions
Full details of the measures and the introductory note to draft secondary legislation (13 March 2019) are available.
The original technical note (29 October 2018) is available.